Market Insights

Headlines

29 August 2011

Risk appetite improves after Ben Bernanke uses Jackson Hole speech to state confidence in US economy Dow closes 1.2% higher (after early losses) on Feds wait-and-see approach USD weakens substantially against risk currencies, AUD/USD breaks higher EUR and GBP both see gains after Jackson Hole, but USD/CHF surges after breaking above 80.00 Gold resumes upward trajectory, crude ends virtually flat Tonight we have German CPI, US pending home sales and ECB president Trichet is speaking

AUD/USD
Resistance 1.0600 Support 1.0500 Market Sentiment

Bullish AUD/USD broke above the upside of the symmetrical triangle formation after Bernankes Jackson Hole speech and this will change the markets view to bullish. With clear resistance at 1.0600, theres the possibility of a move back to 1.0500 and such a move would be seen as a buying opportunity. A break above 1.0600 will also be seen as bullish.

XAU/USD
Resistance 1840 Support 1800 Market Sentiment

Bullish Golds gains on Friday worked as confirmation for the previous days bullish reversal signal and gold traders will now be focused again on the long side. A pullback to support at 1800 will be seen as buyable while a break above 1840 will also be used as a trigger for new longs.

EUR/USD
Resistance 1.4500/40 Support 1.4350 Market Sentiment

Neutral

The Euro provided another opportunity for traders to get long at 1.4350 on Friday before pushing back to the top of the zone at 1.4500. While we have a bullish bias on EUR/USD, traders are likely to work shorts around 1.4500/40 until we see a decisive break higher. A pullback to 1.4350 remains buyable.

GBP/USD
Resistance 1.6400 Support 1.6200 Market Sentiment

Neutral

The GBP/USD is an uncertain position after seeing its short-term pullback exhaust itself around 1.6200. Traders will be looking for shorts on any move back to 1.6400 or on a break below 1.6200. However, a move above 1.6400 will seen traders targeting a move back to 1.6600 on the long side.

USD/JPY
Resistance 77.00/20 Support 76.30 Market Sentiment

Bearish The USD/JPY has moved back into the trading range between 76.30 on the downside and 77.00/20 on the topside. Traders will be looking to work the trading range in the near term, with an eye on the fact that last weeks false break above 77.20 will be seen as a bearish sign.

SILVER
Resistance 42.00 Support 40.00 Market Sentiment

Bullish Silver has continues to push higher after finding lows around 39.00. Looking higher, the next key level of resistance is at 42.00, and traders will be looking to build longs on any pullbacks to 41.20 or 40.00, with a break of 42.00 also seen as buyable.

USD/CHF
Resistance 81.50 Support 80.00 Market Sentiment

Bullish The dollar-Swisss break above 80.00 will be seen as a bullish sign by the market and traders will be looking for new opportunities to get long this pair. A natural pullback to retest 80.00 will be seen as a buyable in expectation of a move back to 81.50.

GBP/JPY
Resistance 127.00 Support 124.50 Market Sentiment

Bearish The GBP/JPY remains trapped in a bearish phase with traders looking to get in the short side. Toward the end of last week, we saw GBP/JPY start to increase momentum to the downside, so traders might be looking for more aggressive shorts around 126.00 rather than waiting for a move back to 127.00.

AUD/JPY
Resistance 81.20 Support 80.20 Market Sentiment

Bullish AUD/JY traders continue to wait for a break above 81.20 for new long positions. Weve seen a break higher in the AUD/USD and this means a break higher on the AUD/JPY should be just around the corner. A break of 81.20 will target 82.00.

OIL
Resistance 86.30 Support 85.00 Market Sentiment

Neutral Oil continues to provide very little action for traders with crude trapped between 85.00 on the downside and 86.30 on the upside. A break of 86.30 will be seen as bullish.

Economic Calendar
F/Cast
AUD: HIA New Home Sales EUR: German Prelim CPI USD: Core PCE Price Index

Last
-8.7% 0.4% 2.04 USD: Personal Spending ECB: Trichet Speaks USD: Pending Home Sales

F/Cast
0.5% -0.8%

Last
-0.2% 2.4%

0.0% 1.84

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